Bad Credit Loans

People take out credit for a whole host of different reasons – whether it’s a mortgage to buy your first home, a credit card to cover unexpected expenses, or a personal loan to make a major purchase or consolidate your existing debts, credit can help to bridge a financial gap.

However, when it comes to loans and other financial products, if you’ve had credit problems in the past, you might find that it’s difficult to access credit when you need it.

Can I Get a Loan With Bad Credit?

If you have missed repayments in the past, or have a County Court Judgement, or bankruptcy against your name, you might be considered to have bad credit.

If you have bad credit, you won’t usually be able to apply for the best loans on the market as those with the most attractive terms and rates are typically reserved for borrowers with good credit histories.

However, although your credit options will be more limited, it’s not to say that you won’t be able to access finance at all – there are a number of options available, including so called bad credit loans.

What is a Bad Credit Loan?

The term bad credit loan refers to a loan that has been designed with the unique needs and requirements of people with a poor credit history in mind. Bad credit loans are similar to other personal or secure loans, but more expensive. Bad credit loans can allow those with poor credit to borrow money, often offering a financial lifeline when it comes to covering a major purchase or consolidating other debts.

In addition to this, a bad credit loan can actually help you to repair your credit history, allowing you to prove to potential lenders that you can make payments on time and manage your money responsibly. Of course, like any loan or form of finance, if you’re considering taking out a bad credit loan, it’s important that you ensure you can make your repayments on time.

It’s also important to consider the interest rate, as this type of loan often comes with substantially higher interest rates than other loans. This is because applicants with bad credit tend to pose a higher risk to lenders. The greater the risk you are perceived to be by the prospective lender, the more interest you can expect to pay and the more borrowing restrictions you will usually face.

What is a Credit Score?

A credit score is a numerical rating that demonstrates how you manage your finances, giving lenders an indication of whether or not you’ll pay back the money they potentially lend you.

There are three main credit reference agencies – CallCredit, Equifax, and Experian – who all keep a version of your credit file. Your report contains information about your financial history, including any mortgages, loans, and credit cards you’ve taken out, including information taken from the electoral roll, court records, search, address, and linked data, and account data.

As almost all lenders check your credit record when you apply for a loan, your credit score can affect your ability to borrow money or access financial products such as loans or credit cards. Lenders use the information contained in your credit file to decide whether or not they are prepared to lend to you, how much they will let you borrow, and how much interest they will charge you.

If you’ve got a good credit rating, you will have more choice and access to cheaper loan rates, whilst if you have bad credit you can expect less choice and to pay more to borrow money. If you’ve never had credit before, you may also struggle to access the best deals as you have no track record for lenders to base their decision on.

With this in mind, it’s well worth taking the time to check your credit score. There are plenty of sites out there that will allow you to check your credit score for free and help you to improve it if necessary.

Why do I Have a Bad Credit Rating?

There are a whole host of reasons why you might have a bad credit rating. Anything from failing to keep up with payments on a credit agreement or having a County Court Judgement against you, through to never having a loan or credit card, can result in a bad credit rating.

In addition to this, if you’ve never taken out any credit before, you will also probably find that you have a bad credit score and may find it difficult to secure credit. This is because, without any sort of credit record, good or bad, lenders will find it difficult to assess how worthy you are of credit.

* If your loan is approved, funds may be cleared and in your account in around 10 minutes.
This is subject to lender checks and clearing times. Our service software will find a match
offering the lowest APR rate possible within our network based on availability.

Lowest APR - Our software system uses sophisticated algorithms to search for and match your
application with a lender offering the lowest APR rate possible based on your current
circumstances. APR rates depend on specific factors and risk and range from 45.3% to
1575%.

Loan Amounts - Your actual loan offer may be less than what you applied for, this is because
every loan application is considered and dependent on affordability. Lenders will consider
loan period, income and outgoings so a decision might be to decline the requested loan but
may accept and present a lower amount offer. Applications may be accepted on a different
borrowing period; this is due to the circumstances of the borrower and the repayments of
the loan based on available income.

Consumer Advisory: Moneypod is a loan matching service. This site will submit the information
you provide to a direct lender. Upon loan approval, a direct lender may require further
information from you which will be collected after we transfer you to their website or they
may contact you via phone or email.

The operator of this site is not a direct lender. Loan terms, conditions and policies vary by
lender and applicant qualifications. Late or missed loan payments may be subject to
increased fees and interest rates. Not all lending partners offer up to £3,500 loans, and
not all applicants will be approved for their requested loan amounts. Loan repayment periods
vary by lender also. Lenders may use collection services for non-payment of loans.

Not all borrowers will qualify for a loan, the operator of this website does not engage in
any direct consumer lending, we simply provide a FREE loan matching service to the
public.

Representative: 278.2% APR

Representative Example: Amount of credit: £900 for 11 months at £154.90 per month. Total
repayment of £1,703.91. Interest: £803.91. Interest rate: 150% pa (fixed). 278.2% APR
Representative. Rates from 45.3% APR to 1575% APR - quotes and APR will be based on your
personal circumstances. Nouveau Finance Limited is authorised and regulated by the Financial
Conduct Authority and is entered on the Financial Services Register under reference number:
727348 We are a credit broker and not a lender and offer credit facilities from a panel of
lenders.

*Fund transfer times may vary based on the matched UK money lender, time of day applied and
your bank.